Balancing Acts — Finding Equilibrium Price

Submitted By:Michael Ryan Moore, University of Pennsylvania, GSE

Date:December 20, 2011

Subject(s):Economics

Grade Level(s):9, 10, 11, 12

Overview:

This lesson uses students’ knowledge of supply and demand curves to explain equilibrium prices. Using the Knowledge@Wharton High School article “How Much Did You Spend on Prom?,” students will consider what happens when markets face excess supply and excess demand. In particular, students will take on the role of small business, calculating earnings and losses at different prices.